Hong Kong issues 800M HKD in tokenized green bonds

The federal government of Hong Kong announced on Feb. 16 that it had issued 800 million Hong Kong {dollars} (roughly $100 million) in tokenized inexperienced bonds below its Inexperienced Bond Programme. The bonds had been underwritten by 4 banks and priced at a yield of 4.05%.

In accordance with the announcement, the platform used Goldman Sachs’ tokenization protocol GS DAP for the bond, which makes use of a non-public blockchain community to settle safety tokens representing the useful pursuits of bonds in a T+1 payment-vs-payment method and money tokens representing claims on the Hong Kong greenback. 

Tokenization, the method of representing belongings or securities as digital tokens, is a comparatively new idea within the monetary world. Through the use of blockchain expertise to create digital tokens, issuers can present extra transparency, effectivity, and accessibility within the issuance and buying and selling of securities. This transfer towards the digital settlement of bonds on non-public blockchain networks marks a major shift from conventional settlement processes, which regularly depend on handbook verification and paper-based documentation. 

Monetary Secretary Paul Chan famous that the profitable issuance of tokenized inexperienced bonds marks a milestone for Hong Kong. He shared: 

“Hong Kong has been actively selling the applying of revolutionary applied sciences within the monetary sector, actively exploring new ideas and applied sciences to enhance the effectivity, transparency, and safety of monetary transactions.”

The profitable issuance of the tokenized inexperienced bond highlights the rising adoption of blockchain expertise within the monetary trade and marks an essential step towards the event of sustainable finance globally.

Associated: NASDAQ-listed Interactive Brokers to supply crypto buying and selling in Hong Kong

The federal government of Hong Kong continues to point that it stays dedicated to the event of digital asset infrastructure. In December 2022, Hong Kong launched two exchange-traded funds for cryptocurrency futures, elevating over $70 million earlier than their launch. 

In October 2022, Cointelegraph reported that Hong Kong’s securities regulator wished to permit retail traders to take a position straight in digital belongings and to rethink present crypto buying and selling necessities. In accordance with Elizabeth Wong, head of the fintech unit on the Securities and Futures Fee, the federal government of Hong Kong is contemplating introducing its personal invoice to manage crypto in its personal China-free approach.

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